Checking Unit Study Guide PDF

Checking Unit Study Guide 1. Where does the money come from when using a credit card? It is deducted from your checking account 2. What is a situation that person to person (p2p) payments would be used? To repay a family member 3. If a person gets paid on the 1^st^ but needs to pay bil...

Checking Unit Study Guide 1. Where does the money come from when using a credit card? It is deducted from your checking account 2. What is a situation that person to person (p2p) payments would be used? To repay a family member 3. If a person gets paid on the 1^st^ but needs to pay bills on the 3^rd^ of the month, what should they do to ensure they have enough money in their account? Sign up for direct deposit so the money is already waiting in the bank 4. What should you do if you have not been drawing money out of your bank account but multiple withdrawals are occurring? Contant your bank immediately, you might have been hacked 5. What type of card does not access money in your checking account? A prepaid card 6. If you need to pay a bill to a place that is over 30 mins away from you, what would make the most sense to do? Use online automatic bill pay 7. What kind of card spends money directly from your bank account? Using your debit card 8. What are the most convenient features of using online and mobile banking? You can request transfers, bill pay, automatic savings, and others without visiting the bank 9. What should you do with all of your checking transactions? Record them in a check register 10. If you have overdraft protection on your bank account and you spend more money than you have then what happens? You will be charged a fee for each transaction and need to pay the bank back the overdrawn amount too 11. How are banks and credit unions different? Banks are owned by shareholders while credit unions are owned by members 12. Using a digital wallet payment like Apple Pay or Samsung Pay is considered safe because? You do not need to hand a card over to a cashier so your personal info is private 13. If you withdraw \$60 from your account, plus a \$3 transaction fee, spend \$34 on groceries but get \$20 cash back, and then deposit \$90 in your account, how much money is left in your account if you started with \$300? \$273 14. What type of transaction may not immediately go through on your bank account? A check you mailed to a family member 15. If you are opening a bank account and can only ask one question, what should it be? What is your schedule of fees 16. The largest source of fees for banks when it comes to checking accounts is? Overdraft fees 17. How does a low balance mobile alert on your checking account work? It alerts you when your balance falls below a certain amount and you will know when to stop spending money 18. What is the difference between a checking statement and a checking agreement? A statement is all your deposits and withdrawals from your account but an agreement shows you the terms for the account like fee structure and minimum requirements 19. If you do not have overdraft protection and try to spend more money than you have in your bank account, what happens? Because you said no, your transactions will be decline if you cannot cover them. 20. Why is it important to have a checking account? Keeps your money safe and easily accessible 21. What do check cashing businesses do? They allow customers to quickly get access to their cash for a small fee 22. Why would a bank representative seem pushy about getting overdraft protection set up? Banks make money by charging overdraft fees 23. Why would someone who has access to a checking account still decide to sometimes use prepaid cards? Prepaid cards allow you to spend money but not lose track of your spending and overspend 24. If you are going to be moving around the country what is the best option for opening a checking account and still be able to access it? Open an account at a large national bank with many locations 25. What is a good habit to have for protecting your online bank account information? Create complex passwords that combine letters, numbers and symmbols